A custom Pine Script indicator that highlights bullish and bearish candles by comparing current close prices with historical close prices, providing visual trading insights.
Explore complementary indicator rolesHow it works
The indicator analyzes price action by comparing the current candle's close price with the highest and lowest close prices from a specified look-back period. When the current close is higher than the previous highest close, the candle is marked bullish in orange, indicating potential upward momentum.
Conversely, when the current close is lower than the previous lowest close, the candle is marked bearish in purple, signaling potential downward movement. The indicator also draws two additional reference lines: a midline at the candle's body center and an open line at the candle's opening price, providing traders with visual context for market behavior.
Why it may be useful
This indicator helps traders quickly identify potential trend changes and momentum shifts by visually highlighting significant price movements. By marking candles that break previous high or low close levels, it provides an intuitive way to recognize potential trend reversals or continuations without complex calculations.
The risk management feature, which calculates tradable units based on the candle's characteristics, adds practical value by helping traders standardize their position sizing. This approach allows traders to maintain consistent risk levels across different trading opportunities, enhancing disciplined trading strategies.
When to explore it
The indicator is most effective in markets with clear directional movements and where price action plays a significant role in trading decisions. It works particularly well in liquid markets with sufficient price volatility, such as forex, major stock indices, and cryptocurrencies, where short-term price fluctuations are common.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and avoid false positives. It is especially useful for scalpers and day traders who focus on short-term price movements and require quick, visual insights into potential trading opportunities.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
